¹ Encina, Francisco, Nuestra Inferioridad Economica (Santiago, 1912)Google Scholar; Frank, Andre Gunter, Development and Underdevelopment in Latin America (New York, 1969)Google Scholar; Santa Cruz, Aníbal Pinto, Chile: Un Caso de Desarrollo Frustrado, (Santiago, 1959)Google Scholar; Necochea, Hernán Ramírez, Historia del Imperialismo en Chile (Santiago, 1970)Google Scholar; Pike, Fredrick, Chile and the United States, 1880–1962, (South Bend, 1963)Google Scholar; and Mamalakis, Markos, The Growth and Structure of the Chilean Economy: From Independence to Allende (New Haven, 1976).Google ScholarMayo, John, “Before the Nitrate Era: British Commission Houses and the Chilean Economy, 1851–80,” Journal of Latin American Studies (JLAS) Vol. 2, Pts 2, (November 1979), 283–302.CrossRefGoogle Scholar

² The northern Central Valley includes the provinces of Aconcagua, Valparaiso, Santiago, O's Higgins, Colchagua, Curicó, and Talca. In 1885 the FFCC del E consisted of 947 kms. of track, of which the FCSV and FCSur (to Concepcion) accounted for 522 kms. Archivo del Ministerio de Interior, vol. 282, letter from Urmeneta to minister on formation of the FCSur. (Hereafter, referred to as AMI). Santiago Marin Vicuña, Los Ferrocarriles de Chile (III Edition, Santiago., 1912), 133–138. There are two works that study the development of the Central Valley and Southern regional rail network. Oppenheimer, Robert, “Chilean Transportation Development; The Railroads and Socio-Economie Change in the Central Valley, 1840–1885,” (Ph.D. Dissertation, UCLA, 1976)Google Scholar and Whaley, John, “Transportation in Chile's Bio-Bio Region, 1850–1915,” (Ph.D. Dissertation, Indiana University, 1974).Google Scholar The exchange rate varied during the period, but averaged approximately 1.5 dollars/peso.

³ Export information from die Estadística Comercial de República de Chile (hereafter, referred to as the Estadística Comercial); Hermann, Alberto, La Producción en Chile de los Minerales mas Importantes de las Sales Naturales, (Santiago, 1902).Google ScholarRoman, Charles Pregger, “Dependent Development in Nineteenth Century Chile” (Ph.D. Dissertation, Rutgers University, 1975), Chaps. 3–4Google Scholar; Sater, William, “Chile and the World Depression of the 1870s,” JLAS, Vol. 2, Pts 1 (1979), 67–99Google Scholar; O'Brien, Thomas F., “Chilean Elites and Foreign Investors: Chilean Nitrate Policy, 1880–82,” JLAS, Vol. 2, Pts 1 (1979), 101–121.Google Scholar

⁴ Resumen de la Hacienda Pública desde 1833 hasta 1914 (London, 1914); Lists of the companies in Valparaiso and Santiago were formulated from ads in El Mercurio and the Matrícula de Patentes of the two cities; Estadística Comercial, Valparaíso from 1844 to 1855 accounted for 92 per cent of imports, 37 per cent of exports, and 91 per cent of coastal-trade. The lows were a result of the 1865–66 war with Spain and depressions.

⁵ Through die 1840s, the Ministry of Interior published annual expenditures and tolls from roads. Between 1842 and 1850, expenditures rose from 7,400 pesos to almost 205,000 pesos, while tolls increased from 30,000 pesos to 46,500 pesos.

⁶ A list of the northern railroad companies includes: Compañía de Ferrocarril de Copiapó, CFC de Coquimbo, CFC y Salitres de Taltal, Fc de Elqui, Fc de Carrizal, FC de Cerro Blanco, FC de Chañaral FC de Colgate, FC deTongoy, FC de Huasco. There were also two streetcar lines: FC Urbano de Santiago, and FC Urbano de Valparaíso. The partners in the Copiapo line and their investment included: Candelaria Goyenechea de Gallo, 100,000 ps.; Agustín Edwards Ossandon, 100,000ps.; Vincente Subercaseaux, 75,000 ps.; Diego Carvallo, 100,000 ps.; Blas Ossa Varas, 75,000 ps.; Gregorio Ossa y Domino Vega, 50,000 ps.; José Maria Montt, 50,000 ps.; Marias Cousiño, 50,000 ps.; Manuel Carril, 50,000 ps.; Wm. Wheelwright, 50,000 ps.; and Gregorio Ossa y Tocornal Hermanos, 50,000 ps. Total investment was 800,000 ps. Source: El Mercurio, September 27, 1849, p. 3.

⁷ The tentative agreement between the government and Wheelwright was found in the Memoria del Ministerio del Interior por el Año de 1846, p. 9, (hereafter, referred to as MMI with the year); William Wheelwright (1798–1873) was born in Newburyport, Mass, and died in London. He was educated at Andover and was a merchant marine captain in 1822. He traded for a number of years in the Argentine provinces, and established himself in Chile in 1827. Founder and president of the Pacific Steamship Navigation Company (PSNC), he supervised construction of the first railroad line in South America in Copiapó, Chile. He also invested in and built many other public works projects in Chile and Argentina. Santiago Marin Vicuña Los Ferrocarriles de Chile, 133–138; for details on the impact of the lines, see Oppenheimer and Whaley.

⁸ Galdames, Luis, History of Chile (New York, 1941, translated by Cox, Isaac), 289–290Google Scholar; Boletín de las leyes, Tomo IV, August 28, 1851, pp. 192–193; Two letters from the British Consul to Chile to the Foreign Office presented tihe ideas that no foreign capital would be required for the formation of a company and that the government was using the line for political motive after the 1851 revolt, F.O./16, Vol. 72, pp. 242–243 and Vol. 81, n.p. (Letter dated January 26,1852).; AMI-282, contained various memos between the President and the Minister on using the FCSV to restore prestige to government.

⁹ El Mercurio, January 10 and 14, 1852; Acta de Una Reunión de Comerciantes y Hacendados presidada el Sr. Manuel Blanco Encalada, (Valparaíso, January 13, 1852) found in MMI-1853, 101–103. AMI-282, “Carta a Presidente,” March 13, 1852; AMI-2H2, attached to letter was undated memo agreeing to April 5th meeting; AMI-282, “Estatutos de la Compañía del Ferrocarril De Santiagoy Valparaíso” and a September 16, 1852, letter from Cousiño explaining how stock was to be divided and sold. For unknown reasons, though their political dissatisfaction with the Montt administration no doubt was a factor, Subercaseaux and Ossa dropped out of the company before finalization of the charter. The final statutes were published in 1852.

Shares of Stock of the FCSV and FCSur Owned by Private Investors and the Government

The years given are those in which the total number changed.

Source: Informes—FCSV and FCSur; AMI; El Mercurio.

¹⁰ MMI-1855, 12–14; AMI-282, August 25, 1855, letter from Urmeneta; Boletín de las Leyes, Tomo VIII, August 24, 1955, “Lei del Ferrocarril del Sur,” 80–81, and Tomo IX, “FCSur” March 31, 1856, p. 26.

¹¹ Data on the internal rate of return come from the Informe de la Comision nombrada en 14 de diciembre de 1868 para examinar el sistema de administracion del Ferrocarril de Santiago a Valparaiso (Santiago, 1869;), 4; MMI-1863, 14; Huidobro, Fco., Apuntes Estadistica de los Ferrocarriles del Estado (Santiago, 1910), 28Google Scholar; and the Informes of the companies; Bauer, Arnold, Chilean Rural Society (London, Cambridge University Press, 1975), 98–99.Google Scholar Bauer indicates that prime interest rates, a good indicator on acceptable rates of return on investments, were 7 to 9 per cent and often higher. Mayo states that commission houses received 7.5 per cent commission and estimates interest rates at 8–10 per cent. Mayo, “Before the Nitrate Era,” 290, 296. Salsbury, Stephen, The state, the Investor and the Railroad; The Boston & Albany 1825–1867 (Cambridge, Mass., 1967), 34, 59, and 138–139.Google Scholar

¹² The data on the formation of the companies were taken from the statutes of the companies given in the Boletín de las Leyes, 1852–1886. The leading investments were 28 banks at 86,500,000 ps., 126 mining companies at 56,000,000 ps., 11 insurance companies at 17,700,000 ps., and 12 railroads at 16,200,000 ps. In total, 270 corporations were formed with initial capital investment of 210,000,000 pesos. Export oriented companies numbered 185 with capital assets of about 100,000,000 pesos. Banks, which invested in domestic and export activities, accounted for 86,500,000 pesos, and domestically oriented companies (55) represented an investment of only 13,000,000 pesos.

¹³ Charles Pregger Roman, “Dependent Development,” Chapters 3 and 4 and pp. 241–244; O'Brien, Thomas F., “British Investors and the Decline of the Chilean Nitrate Entrepreneurs, 1870–1890” (Ph.D. Dissertation, University of Connecticut, 1976).Google Scholar

¹⁴ The data on the Copiapó and Coquimbo lines was taken fromtheir annual reports. This pattern of investment is distinguishable from the U.S. or European pattern of trade to industry to banking. The Chile pattern would tend to be more conservative, but I cannot determine the extent to which this affected development.

¹⁵ The sources for the lists of stockholders for the FSCV; El Mercurio, October 26 and 28, 1852, “Razón de los Accionistas” MMI-1858, “Ferrocarril de Santiago a Valparaíso-Accionistas-Dic. 9, 1857”; El Ferrocarril, Julio 23, 1859, “Lista de Accionistas Particulares en la Empresa del FCSV el 5 i 15 de Die. 1858”; AMI-282, “Accionistas del FCSV, Die. 9, 1857,” “Lista de Accionistas del FCSV que el Fisco ha Comparado a los Individuous que se Mencionan, 5 i 15, de Die. 1858,” “Lista de Accionistas Particulares en la Empresa del FCSV el 22 de Mayo de 1859.” For the FCSur; El Mercurio, Julio 9 and 26 and Aug. 4, 1855, “Nomina de Accionistas del FCSur.”; The remainder of the lists were from the Informes of the line in the years 1860, 1864, 1867, 1868, June 1869, December 1869, June and December 1870, June and December 1871, 1872, and 1873. All were titled “Lista de los Accionistas del Ferrocarril del Sur.” To facilitate matters, all references to these lists from this point will refer only to Accionista list and the company. The data on the formation of the corporations were taken from the Boletín de las Leyes, 1852–1886; passim. Hundreds of company records were reviewed to determine the extent to which railroads were indicative of general investment patterns.

¹⁶ Accionista lists of the FCSV and FCSur.

¹⁷ A major stockholder had to own 50 shares or more. This figure isused because it required at least 50 shares to sit on the Board of Directors.

¹⁸ All occupations were those declared by the investors in railroad or other legal documents. Therefore, the total is greater than the number of investors, since over the period some declared more than one occupation. Since virtually all fundos produced some exportable products, the owners are included as part of the export sector.

¹⁹ Other holdings by investors included:

Urban property Mining Stocks

Also, of the 399 investors, 93 had university degrees, 137 were members of prestigious social clubs, and 268 were related to at least one other member. Women and minors could not be members of the clubs or attend the university. Also, 224 of the 298 eligible (women, minors, and foreigners were excluded) held political office.

²⁰ Material on the stockholders was taken from extensive primary and secondary sources including notarial records, judicial archives, family histories, newspapers, matricula de Patentes, and other public and private records.

²¹ Ibid.

²² Ibid.

²³ The four foreign companies included three British and a German company.

²⁴ Balmori, Diana and Oppenheimer, Robert, “Family Clusters: Generational Nucleation in Nineteenth-Century Argentina and Chile,” Comparative Studies in Society and History, JLAS, Vol. 21, Pts 2 (April 1979), 231–260.CrossRefGoogle Scholar

²⁵ Data on the Ossa y Cerda family were gathered from the Accionista lists of the FCSur, judicial archives and notarial records.

²⁶ Details on the economic and legal rights of women were taken from the judicial and notarial archives, particularly of Santiago. The FCSV and 15 women shareholders and the FCSur 29. All 44 were related to at least one other stockholder. Of the 29 investors in the FCSur, 22 inherited their stock, and in the FCSV 12 were married, but only 5 husbands held stock.

²⁷ Avaria, Luis Valencia, Las Anales de Chile (Santiago, 1952, 2 vols.)Google Scholar lists all Congressmen. The list was checked against the lists of stockholders in the two companies; Loveman, Brian, The Legacy of Hispanic Capitalism (London, 1979), 135–138.Google Scholar

The three wealthy women mentioned in the text inherited their wealth from their fathers and husbands.

²⁸ For specific details and examples on this type of government support to the rail companies, see Robert Oppenheimer, “Chilean Transportation Development,” Chapter IV, notes 62–66.

²⁹ Loveman, Brian, Chile: The Legacy of Hispanic Capitalism (London, 1979), 169–182Google Scholar; Vitale, Luis, Interpretation Marxista de la Historia de Chile Santiago, 1971), Vol. III, 255–286.Google Scholar

³⁰ AMI-282, Letters of May 20 and August 27, 1857, on loans for FCSur, and December 9, 1857, about a loan to FCSV; AMI-282, loan to FCSV to defray costs of San Pedro Tunnel; Sesiones del Congreso-Diputados, October 15, 1857, p. 155, Congress grants emergency loans; Sesiones del Congreso-Extraordinario, October 8, 10, and 16, 1857, pp. 152–55; Boletín de las Leyes, Tomo IX, November 5, 1857, p. 446. “Proyecto de lei de Empréstito” MMI-1859, Documento 1, “Empréstito Chileno”; AMI-282, March 22 and April 30, 1859, letters from Ochagavía on loan.; Resumen de la Hacienda Pública, Chap. III, 15–17. Silvestre Ochagavía Errázuriz (1820–1888) was born in Santiago and died in Great Britain. He graduated from the Univ. de Chile in 1842 with a degree in law. He was a Deputy (1852–1858) and Senator (1858–1867). He rejected Manuel Montt's request that he be a presidential candidate in 1861. He ownedstock in the FCSur and fundos in Santiago and San Bernardo. Though he spent a great deal of time outside of Chile, he maintained a residence in Santiago. He was married to Concepción Echaurren Huidobro. He had extensive holdings in real estate, stock, mining, and commerce.

³¹ José María Berganza, Contaduría Mayor, Cuenta General de las Entradas y Gastos Fiscales de la República de Chile en 1860, (found in MM 1–1861), “Estado de los Fundos del Empréstito de 1858” The same document for succeeding years was found in MMI-1861–65.

³² MMI-1857, 13–14; government's position on desire to continue construction of FCSV; Informe-FCSV, 1857, company's position and agreement to divide responsibility, 21–22; MMI-1863, government's position on continuation of FCSur; Informe-FCSur, 1864, 4, company's position; AMI-512, agreement between government and FCSur in 1863; AMI-282, November 5 and 7, 1857 discussion between FCSV and government to purchase line; Boletín de las Leyes, Tomo XXII, part 1, August 20, 1873, 89–90.

³³ Sesiones del Congreso-Diputados, August 10, 12, 17, and 19, 1858, pp. 208–209, 227–231, 242–245, 252–256; Sesiones del Congreso-Senado, August 31, and September 15, 1858, pp. 322 and 358–361.

³⁴ Charles Pregger Roman, “Dependent Development,” 228–230; Marcella, Gabriel, “The Structure of Politics in Nineteenth Century Spanish America: The Chilean Oligarchy, 1833–1891” (Ph.D. Dissertation, University of Notre Dame, 1973).Google Scholar

³⁵ AMI-282, exchange of letters from Board of Directors of Copiapó line requesting a loan and the responses of the government rejecting these requests.

³⁶ Goodwin, Paul, “The Central Argentine Railway and the Economic Development of Argentina, 1854–1881,” Hispanic American Historical Review (HAHR), Vol. 57, Pts 4 (1977), 613–632CrossRefGoogle Scholar; Fleming, Wm., “Regional Development and Transportation in Argentina: Mendoza and the Gran Oeste Argentina Railroad, 1885–1914” (Ph.D. Dissertation, Indiana University, 1976)Google Scholar; Mattoon, Robert, “Railroads, Coffee, and the Growth of Big Business in Sao Paulo, Brazil,” HAHR, Vol. 57, Pts 2 (1977), 273–295Google Scholar; Schmidt, Arthur, “The Social and Economic Effect of the Railroad in Puebla and Vera Cruz, Mexico, 1867–1911” (Ph.D., Indiana University, 1974)Google Scholar; Coatsworth, John, Crecimiento contra desarollo: el impacto de los Ferrocarriles eu el porfiriato (Mexico, 1976).Google Scholar